Parenting & Family

Child Tax Benefit - Everyone Gets It???

  • Last Updated:
  • Sep 11th, 2020 10:23 pm
[OP]
Deal Addict
User avatar
Jan 16, 2011
3930 posts
3478 upvotes
The NORTH

Child Tax Benefit - Everyone Gets It???

Hey All;

So about 6 weeks ago I received a letter from the CRA that my Child Tax Benefit account was under review which I thought was weird as my family had never received any Child Tax payments. I just always thought that we made too much money as our family income was 6 figures. Government wanted verification of our address since 2012 as well as some pretty specific documents to verify that our kids lived with us. I pulled together the documents over a week and submitted them not thinking anything of it. Fast forward to this past Monday and we get a letter that we SHOULD have received our benefit payments all along and we will be receiving payments starting next month as well as a huge cheque in unpaid back payments. Becoming a stay at home dad last summer, this monthly payment certainly helps and solve's the question of whether we now qualified... I still don't know how you apply for this benefit but apparently everyone gets something...

Maybe its common knowledge that everyone gets this benefit but I had no idea so as a heads up if you have kids you should be receiving something regardless of income.

Hope this post helps someone.
27 replies
Deal Addict
Nov 13, 2013
2317 posts
1117 upvotes
Ottawa
Depending on how many kids you have it gets phased out somewhere above $100k in family income. If you are low income and have a lot of kids it must be transformative. If you have six kids living somewhere like TImmins your after tax income from this alone would put you in the top 10%
Deal Fanatic
User avatar
Feb 15, 2005
5773 posts
1290 upvotes
Our CCB decreased by ~50% from $43/month to $20 even though our income remained the same.
⬆⬆⬇⬇⬅➡⬅➡BA

「上上下下左右左右BA」
Deal Addict
May 23, 2017
2623 posts
1529 upvotes
rf134a wrote: Our CCB decreased by ~50% from $43/month to $20 even though our income remained the same.
you are getting $20? a month or week or what? thats really low.
Got that Zoomer account!
[OP]
Deal Addict
User avatar
Jan 16, 2011
3930 posts
3478 upvotes
The NORTH
riseagainstthemachine wrote: you are getting $20? a month or week or what? thats really low.
It's monthly and depends on age of kid / kids, where you live and family income. My family with 2 kids under 8 and a toddler are getting $800 a month with one stay at home parent. We are putting $150 per month, per kid into thier RESP. After all, it's a credit to help with the raising of kids, not a whatever income credit.
Deal Addict
May 23, 2017
2623 posts
1529 upvotes
kr0zet wrote: It's monthly and depends on age of kid / kids, where you live and family income. My family with 2 kids under 8 and a toddler are getting $800 a month with one stay at home parent. We are putting $150 per month, per kid into thier RESP. After all, it's a credit to help with the raising of kids, not a whatever income credit.
I like where your heads at. I will be setting up a RESP too through my accountant. are there any other benefits that I can apply for or is that it along with the mat leave for my wife? It is our only child, not sure we will hit some sort of ceiling, our household income will be about $65,000
Got that Zoomer account!
Sr. Member
Aug 27, 2004
673 posts
141 upvotes
Cyberspace
fogetmylogin wrote: Depending on how many kids you have it gets phased out somewhere above $100k in family income. If you are low income and have a lot of kids it must be transformative. If you have six kids living somewhere like TImmins your after tax income from this alone would put you in the top 10%
Here's a handy link: Child and family benefits calculator
You need to provide household income and children's birth dates. (I wouldn't put exact days, just correct month, year)

If you plug the numbers, you can see easily how the average RFDer making 100k can get a sack of government cash if he has 3 kids under 7 and another 2 kids under 18.
Former Know-It-All
Deal Fanatic
User avatar
Feb 15, 2005
5773 posts
1290 upvotes
riseagainstthemachine wrote: you are getting $20? a month or week or what? thats really low.
Per month. We're 2 CPAs so we're likely in the top 5-10% of income earners.
riseagainstthemachine wrote: I like where your heads at. I will be setting up a RESP too through my accountant. are there any other benefits that I can apply for or is that it along with the mat leave for my wife? It is our only child, not sure we will hit some sort of ceiling, our household income will be about $65,000
Why would you setup an RESP through your accountant? Set it up at a bank or credit union. DO NOT go anywhere else for an RESP. I would invest in a combination of index and dividend funds. Look up the couch potato method and do something similar since you want preservation of capital with reasonable returns with low risk and low management fees.
⬆⬆⬇⬇⬅➡⬅➡BA

「上上下下左右左右BA」
Deal Addict
Jun 24, 2015
3929 posts
1152 upvotes
Woodbridge, ON
when your wife gives birth you register for the four - in - one newborn bundle and it automatically enrolls you in the baby bonus as well as registered your birth certificate and ohip and applies for the sin card
Hi
Deal Addict
May 23, 2017
2623 posts
1529 upvotes
rf134a wrote: Per month. We're 2 CPAs so we're likely in the top 5-10% of income earners.


Why would you setup an RESP through your accountant? Set it up at a bank or credit union. DO NOT go anywhere else for an RESP. I would invest in a combination of index and dividend funds. Look up the couch potato method and do something similar since you want preservation of capital with reasonable returns with low risk and low management fees.
hes a family friend and financial adviser, maybe accountant was the wrong thing to call him. I will for sure not sign up for one that has any sort of fees.
Got that Zoomer account!
Deal Expert
Aug 2, 2001
16577 posts
6703 upvotes
fogetmylogin wrote: Depending on how many kids you have it gets phased out somewhere above $100k in family income. If you are low income and have a lot of kids it must be transformative. If you have six kids living somewhere like TImmins your after tax income from this alone would put you in the top 10%
The one thing to keep in mind with CCB is that it's net income - so it's after deductions like RRSP contributions. This gives you one way to "game" the system if you can lower your net income (e.g. make RRSP contributions while on maternity leave).
Deal Addict
Nov 13, 2013
2317 posts
1117 upvotes
Ottawa
TrevorK wrote: The one thing to keep in mind with CCB is that it's net income - so it's after deductions like RRSP contributions. This gives you one way to "game" the system if you can lower your net income (e.g. make RRSP contributions while on maternity leave).
But it resets every year so I don't think it is really gaming the system. I guess if you have a 16 year old best to take the deductions rather than after they turn 18 but otherwise RRSP deductions just become a bit better. Basically people with kids have a higher marginal tax rate because of the CCB so RRSP deductions are more lucrative for them.

I think a new government will return to something universal that benefits suburban swing voters so maybe best to take what you can get now.
Deal Expert
Aug 2, 2001
16577 posts
6703 upvotes
fogetmylogin wrote: But it resets every year so I don't think it is really gaming the system. I guess if you have a 16 year old best to take the deductions rather than after they turn 18 but otherwise RRSP deductions just become a bit better. Basically people with kids have a higher marginal tax rate because of the CCB so RRSP deductions are more lucrative for them.

I think a new government will return to something universal that benefits suburban swing voters so maybe best to take what you can get now.
It definitely does reset but it can also be a massive windfall. I think in our case we are able to time it so that we will receive ~$10,000 boost in child/income related benefits (over the course of a year), besides the obvious income tax savings.

To me it feels like it's gaming the system because it's net income after a bunch of deductions. Most social programs do not allow you to count your income after deductions (at least in my city / province). I should not qualify for these programs with the wage I make but because I can make a substantial RRSP contribution I now magically can. On one level it feels like the system is setup wrong when it allows this (even if just for a year). It's hard to always explain but sometimes taking advantage of something you qualify for can still not feel "right" to some extent.
Deal Addict
Nov 13, 2013
2317 posts
1117 upvotes
Ottawa
TrevorK wrote: It definitely does reset but it can also be a massive windfall. I think in our case we are able to time it so that we will receive ~$10,000 boost in child/income related benefits (over the course of a year), besides the obvious income tax savings.

To me it feels like it's gaming the system because it's net income after a bunch of deductions. Most social programs do not allow you to count your income after deductions (at least in my city / province). I should not qualify for these programs with the wage I make but because I can make a substantial RRSP contribution I now magically can. On one level it feels like the system is setup wrong when it allows this (even if just for a year). It's hard to always explain but sometimes taking advantage of something you qualify for can still not feel "right" to some extent.
I completely agree. Basically I think of this benefit as increasing the marginal tax rate for those with children. If you have enough children and the right income it could get as much as 75%. (This is with like 12 kids but still)
Absolutely agree that with daycare and RRSP deductions it is possible to make a big change in your benefit which doesn't seem fair.

Top